Question 320229: Lee invests $10,000 in stocks and bonds. The stocks return 15% a year and the bonds return 10% a year. If the total return on the investment after one year is $1,100, how much did Lee invest each in stocks and bonds?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Lee invests $10,000 in stocks and bonds. The stocks return 15% a year and the bonds return 10% a year. If the total return on the investment after one year is $1,100, how much did Lee invest each in stocks and bonds?
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Quantity Equation: s + b = 10,000
Interest Equation:0.15s + 0.10b = 1100
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Multiply thru 1st by 15;
Multiply thru 2nd by 100:
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15s + 15b = 15*10,000
15s + 10b = 110000
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Subtract 2nd from 1st and solve for "b":
5b = 40,000
b = $8000 (amt. invested in bonds)
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Since s + b = 10,000, s = $2000 (amt. invested in stocks)
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Cheers,
Stan H.
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